Flashcards in Theme 1.1 Deck (9)
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1
What is business enterprise?
Business enterprise is the process of identifying new business opportunities and then taking advantage of them.
2
Give three purposes of business activity
Provide people with a good or service, Meet customer needs and Add value
3
Name the ways in which a business can add value to a product
Make a product convenient, Having a good brand image for a product, Improve the design or quality, Have a USP for the product.
4
Why do new business ideas come about?
Changes in technology, Change in consumer needs, Products becoming obsolete.
5
What are the two types of business ideas?
Business ideas can be original or an adaptation of an existing product.
6
What is an entrepreneur?
An entrepreneur is someone who takes on the risks of enterprise activity.
7
What must an entrepreneur be able to do to run a successful business?
Organise resources (cash flow, resource, organisation), Take risks(Leave current job, Lack of security, Potential failure), Make business decisions(using intuition).
8
What are the risks of running a business?
Lack of security (no steady income, could end up unemployed, leave a former job).
Failure (Time, money and effort wasted).
Financial Loss
9
